Lori’s Gifts, a leader in operating hospital gift shops across the U.S., is taking a bold step into the future of retail. The company has rolled out its first fully automated, checkout-free store concept, named GO Market by Lori’s. This innovative solution marks a major expansion into the healthcare retail market, particularly in smaller hospitals where traditional staffed stores are not financially viable.

Simplifying the Shopping Experience with "Scan, Grab and Go"

The concept behind GO Market is simple yet futuristic. Shoppers can enter the store by scanning their credit card at a gate, which opens to allow them to pick up any item they wish. There’s no need to interact with a cashier. The process is designed to be quick and seamless: “Scan, grab, and go,” says Mike Kriesman, Chief Information Officer at Lori’s Gifts. Once they are finished shopping, customers simply exit the store and are automatically charged based on what they’ve taken.

These stores, which range from 500 to 700 square feet, offer a variety of products such as flowers, snacks, apparel, and sundries. They cater to both patients and hospital staff, with many locations open 24/7 to accommodate night shifts. Lori’s Gifts recently launched its first GO Market at Medical City Decatur in Texas, with plans for additional stores in Ohio and the Dallas-Fort Worth area by the end of May.

AI Tech Takes Over Traditional Registers

Lori’s Gifts’ leap into the checkout-free world is powered by AiFi, an AI-driven company that specializes in spatial intelligence. Unlike Amazon’s more traditional technology, AiFi’s system uses off-the-shelf IP cameras and does not require special sensors or adjustments to store lighting. The system tracks customer movements and objects in the store to determine what items have been picked up or put down.

Each store uses around 40 cameras, depending on its size, to monitor around a few hundred SKUs (stock-keeping units). The system’s AI algorithms track customer behavior, such as picking up or putting back items, automatically adding or removing them from the customer’s virtual cart as they leave the store.

“The system is designed to be extremely accurate,” Kriesman explained, with the AI maintaining a 99% accuracy rate. While there was an initial learning curve for both customers and the technology, the system has become increasingly reliable over time.

Reducing Theft and Shrinkage to Near-Zero

One of the most appealing aspects of Lori’s Gifts’ automated stores is the significant reduction in theft, or “shrinkage,” an issue that plagues many retail outlets. By requiring customers to scan their credit cards to enter the store, the likelihood of theft is dramatically minimized. Kriesman anticipates theft rates to approach near zero, compared to the 1.6% average shrinkage rate reported by the National Retail Federation in 2022.

In case of a power outage, the gates will automatically shut to prevent entry, although customers already inside can still exit. Despite this potential risk, the company sees outages as rare and unlikely to impact the store’s efficiency.

Overcoming Non-Tech Barriers: Educating Shoppers

While the AI-powered technology works seamlessly behind the scenes, there’s still one major hurdle: teaching customers how to use the system. Some shoppers initially walk up to the gate expecting to find a cashier, which has led to confusion. To address this, Lori’s Gifts has installed signs and video monitors at the entry points to demonstrate how the store works. “It’s a different experience, and people are not used to that,” Kriesman admitted.

These educational efforts are aimed at reassuring customers that they can simply pick up items and leave, without fear of being reprimanded.

With GO Market, Lori’s Gifts is making strides in reshaping hospital retail by providing a 24/7, self-service solution that fits the modern, tech-savvy world. The concept offers not only convenience for patients and staff but also a more efficient, cost-effective way for hospitals to provide essential goods. As Lori’s Gifts continues to expand this model, it could very well pave the way for a new standard in healthcare retail, blending the benefits of AI technology with the convenience of on-the-go shopping.